Cramer’s 2 Plays Amid Market Turmoil

When oil prices fall, Cramer said it’s often blamed on a lack of demand. Few accept it could be going down thanks to the hedge funds, he said. After all, money managers, who own oil through the futures or exchange-traded funds, are getting killed because they trade on margin and need to begin “liquidating like mad.”

Much of the velocity at which the market is falling is due to the machines used by high-frequency traders, Cramer continued. So he suggests slowly buying shares on the way down. Once the hedge funds are done liquidating, he thinks oil prices will rise again, along with oil companies' stocks.

Like oil, some regard gold as a commodity. Cramer, however, said gold is not a commodity. He thinks it’s a currency. Gold is increasing in value, too, as countries continue to print money in an effort to stimulate their economies.

“If gold takes a price break, I am telling you to jump on it,” Cramer said. “Gold remains the best insurance against the chaos that seems to grow by the hour in this difficult, emotional time.”

To play the precious metal, Cramer likes bullion (the physical bars of gold), gold coins and the SPDR Gold Shares exchange-traded fund and in that order.